Ann: Appendix 3B - Issue of Performance Rights, page-3

Randy,

if you haven't worked it out yet .......

1. this Board are basically "caretakers" for their banking syndicate......
2. do the forward earnings numbers (at whatever utilisation / day rate you think is appropriate), and then ask the obvious question - "can they pay down the debt" ........
3. given the debt "timeline" .......ask what is the most reasonable way that this puppy gets to "live" ...........my best guess is re-cap mark 2......"

of course they need to be rewarded - they are protecting the B&D provisions of a couple of lenders .......

rgds

V_H